Natural gas from Russia heading to Europe after two-week shut-off

PISAREVKA, Russia 
Russian natural gas finally flowed into Europe again yesterday after Russia and Ukraine pulled back from an energy war that drastically reduced supplies to many nations for two tough winter weeks.

The experience of the last two weeks has left many in Europe bitter toward both Russia and Ukraine, and eager to reduce European dependence on an energy network originating in the gas fields of Siberia. The 27-nation European Union gets about a quarter of its gas from Russia.

More than 15 nations in the Balkans and eastern Europe were left scrambling for alternative energy sources. Thousands of factories shut down for lack of fuel and millions of people shivered in unheated homes.

The EU – dismayed when a deal sending monitors to key pipeline junctures failed to get gas flowing – marked the renewed deliveries with relief and remonstrations.

“It was utterly unacceptable that European gas consumers were held hostage to this dispute between Russia and Ukraine,” European Commission President José Manuel Barroso said. “We must not allow ourselves to be placed in this position in future.”

Barroso said that before the dispute was ultimately resolved, Russian Prime Minister Vladimir Putin and his Ukrainian counterpart, Yulia Tymoshenko, had “systematically” vowed to end their dispute but then reneged.

“I will not forget that,” Barroso said.

Many in the Balkans and eastern Europe won't forget it, either. Slovakia was forced to ration gas. Impoverished Moldova switched to heating oil for power plants, and its people stockpiled bread and built wood fires to stay warm.

Serbia and Bosnia, at odds for years, came together as Serbia shared some of its own precious gas supplies to help Bosnia cope.

No such warmth is likely between Russia and Ukraine.

The former Soviet neighbors share millennium-old historical ties, but their relations are vexed by widely different geopolitical visions as Ukraine's leaders try to guide their nation toward NATO and the EU.

Putin said the 10-year gas supply and transit deals signed with Ukraine on Monday should bring an end to their annual gas price wars.

Ukraine is to receive gas at a 20 percent discount from this year's average European price, which Russia says is $450 per 1,000 cubic meters. That price is likely to decrease as the effect of slumping oil prices kicks in, but it still means an increase from the $179.50 Ukraine paid last year.

Russia pays the same amount as last year – $1.70 for the transportation of 1,000 cubic meters per 100 kilometers– to ship the gas through Ukraine's pipelines.

In 2010, both countries are to pay market prices – Ukraine for the Russian gas it uses and Russia for the transit of gas to Europe.